After Vietnam’s leading domestic producer Hoa Phat revised its new list prices downward last week, market sentiment has deteriorated further. As a result, this week, as expected, import HRC indications have also softened, with new offers reflecting the weaker mood. Besides, some occasional deals for ex-India material are reported to have been concluded at even lower levels, as Indian suppliers have continued to provide the most competitive discounts in the market.
Import offers for ex-China Q235 2,000 mm HRC in Vietnam have been voiced at $470-472/mt CFR, compared to $478/mt CFR last week. Besides, indicative offers for ex-China SAE1006 HRC have been estimated at $485/mt CFR, down by $10/mt week on week.
Offers for SAE1006 HRC from most foreign suppliers have remained relatively stable over the past week or have even showed a slight downward bias as most suppliers have been struggling to attract Vietnamese buyers’ attention due to slow demand. The most competitive offers have been voiced from Indian suppliers at $480-485/mt CFR, down by $5/mt week on week. Besides, following a deal for around 30,000mt of ex-India HRC signed at $480-482/mt CFR Vietnam for January shipment last week, this week another deal for around 20,000 mt has been signed at $478-482/mt CFR, while talk about one more deal for around 40,000 mt signed at $475/mt CFR has been circulating in the market, which translates to around $455-457/mt FOB. “We also heard rumours that one of the Indian mills has booked a vessel to the Vietnamese market at as low as $440/mt FOB, which is indeed very aggressive pricing,” a market insider told SteelOrbis.
Furthermore, offers for ex-Indonesia 3 mm SAE1006/SS400 HRC have been heard at $490-495/mt CFR, mainly the same as last week. Besides, offers for ex-Japan SAE1006 HRC have settled at $510/mt CFR for January shipment, while suppliers from South Korea have been offering their coils at around $500/mt CFR for January shipment.
Thus, the SteelOrbis reference price for import SAE1006 HRC has moved to $478-490/mt CFR, from $490-495/mt CFR last week, given more discounted offers and deal prices coming from India, while Vietnamese customers’ bids for other HRC origins have also dropped.
“The downtrend has accelerated, with Indian mills undercutting regional suppliers and offering the most competitive levels in the market. Buyers report some concluded deals are noticeably below last week’s indications, reinforcing the weakening sentiment that began after Hoa Phat’s domestic price reduction,” a market insider told SteelOrbis.
Notably, as SteelOrbis reported last week, Vietnamese HRC producer Hoa Phat Group announced its new prices for February delivery, decreasing them by around $15/mt month on month to VND 13,290-13,320/kg ($504-505/mt) CIF.